One of the questions that keep crossing our mind and we usually don’t get the answer for is: Where does the government spend the taxes it collects from us? Technically it is a very simple ‘one word’ answer. The government spends the money on the welfare of the citizens and the development of the country. But these are just the broad categories. There is a further breakdown of the spending. The tax money of the citizens is spent in two ways – planned and non-planned. A non-planned expenditure is something which happens because of certain unforeseen situations or contingencies. We will talk about the planned expenditures in this article.
A huge amount of tax paid money is spent as military expenditure. The security of the nation is of prime concern for the government and this is the reason why they have to spend a lot of money on it. The big part of budget is spent on the salaries of the military personnel. Then there is another chunk of money which goes into research and development. Other than this, there are other areas as well, such as, purchase of arms and ammunition, purchase of fighter planes, ships, new technology devices and many more.
A considerable portion of the tax money is spent on the agricultural development. A lot of things are subsidized for the farmers so that they can grow the crops and provide the nation with the ample amount of food. Since India’s economy relies a lot on the agriculture, this is the reason why this area is given a great deal of importance when the budgets are allocated.
Expenditure for Rural Development
Rural development is another important area of focus for the government. The expenditure in this area happens in many ways. Lots of grants and aids are being provided to the people of the rural area as to make sure that there is development there. India has a vast rural area and this is the reason why expenditure for rural development is also high.
Investment in Energy
Expenditure in the field of energy is among the top 3 biggest expenditures for the government. Lots of subsidies are being provided to the people so that they are able to get the energy. Additionally, a great deal of research happens in this area which requires a lot of money. Government also spends a lot of money in setting up new energy projects. Moreover, the maintenance cost of energy plants is pretty high. So this is one area where a big portion of your tax money is being spent.
Investment in science and technology
In the recent times, government of India has start spending a lot of money on the development in the field of science and technology. In today’s time, every country has to keep up with the advancements in technologies all over the world. Therefore, for India to make progress in this field, a considerable amount of money was needed. This is one area where the government expenditure may increase in the future.